Budget News

No progress has been made in resolving the budget impasse in Springfield. The House met last week and failed to address the mass transit issues facing the metropolitan Chicago area. This bill failed by ten votes. The Senate was scheduled to meet on Monday and Tuesday of this week but those sessions were cancelled this morning. Allegedly they will meet next Monday to deal with the mass transit issue and other “capital” projects. The legislative calendar at www.ilga.gov now lists identical veto sessions for the Senate and House for the first two weeks of October.

The battle between Speaker of the House Madigan and our illustrious Governor continues with more name calling and posturing. Last week the Governor informed the State Superintendent that the budget impasse was due to the actions of Speaker Madigan and that local district would lose money that was authorized in his approved budget. Madigan has vowed to override the Governor’s budget cuts but has not taken action to do so at this time. Senate President Jones has vowed that there will be no consideration of any overrides in the Senate. Speaker Madigan has scheduled 19 budget hearings across the state to increase public awareness of the budget cuts made by Governor Blagojevich. They will begin this week in Decatur.

In the meantime, local schools are supposed to begin receiving state aid based on last year’s formula. No new funds that have been approved can be distributed until the legislature passes a Budget Implementation Plan (BIMP). HB 471, waiting in the House has not been voted on. As this debacle continues, local school districts will need to divert local tax monies that should be invested and earning interest to pay for current expenses that would be covered by normal state funding. It is sure that this crisis will be over later rather than sooner as districts need to finalize and approve FY 08 budget by September 25, 2007.